Energy and Resources Legislation
Amendment Bill 2010
Introduction Print
EXPLANATORY MEMORANDUM
General
The Bill contains a range of amendments to various Acts, including the
Electricity Industry Act 2000, the Electricity Safety Act 1998, the
National Electricity (Victoria) Act 2005, the Energy Safe Victoria Act
2005, the Mineral Resources (Sustainable Development) Act 1990, the
Petroleum Act 1998, the Geothermal Energy Resources Act 2005, the
Greenhouse Gas Geological Sequestration Act 2008, the Offshore
Petroleum and Greenhouse Gas Storage Act 2010, the Pipelines Act 2005,
the Victorian Energy Efficiency Target Act 2007, the Victorian
Renewable Energy Act 2006, the Gas Industry Act 2001, the Energy
and Resources Legislation Amendment Act 2009, and the Aboriginal
Heritage Act 2006. The Bill also repeals the Mines Act 1958.
Clause Notes
PART 1—PRELIMINARY
Clause 1 sets out the main purposes of the Bill.
Clause 2 sets out the commencement provisions for the Bill. The Act
(other than section 83) will commence on a day or days specified
by proclamation, or if a provision of the Bill has not commenced
by 1 July 2011, it commences on that day. Section 83 will come
into operation on the day after the day the Act receives the Royal
Assent.
PART 2—AMENDMENT OF ELECTRICITY INDUSTRY
ACT 2000
Clause 3 amends the heading of Division 2A of Part 2 of the Electricity
Industry Act 2000 as a consequence of the amendment made by
clause 5 of the Bill.
561396 1 BILL LA INTRODUCTION 22/6/2010
Clause 4 repeals the definition of wind energy generation facility in
section 15B of the Electricity Industry Act 2000, which is
redundant as a consequence of the amendment made by clause 5
of the Bill.
Clause 5 omits the phrase "wind energy" from section 15C(2) of the
Electricity Industry Act 2000 to remove the limitation that the
Minister be satisfied that a distribution augmentation or proposed
augmentation will facilitate the development and construction of
a generation facility that is a wind energy generation facility,
before the Minister may make a recommendation to the Governor
in Council to declare that a distribution augmentation or proposed
augmentation is a "relevant augmentation" for the purposes of
section 15C(1) of that Act.
Clause 6 omits the phrase "wind energy" from the heading to section 15D
and from section 15D(1)(a) of the Electricity Industry Act
2000. Section 15D of that Act provides that the Governor in
Council may make Orders specifying various matters in relation
to the connection of generation facilities to a relevant
augmentation. This clause removes the restriction that Orders
may only be made in respect of wind energy generation facilities.
Clause 7 amends section 29 of the Electricity Industry Act 2000 to
require the Essential Services Commission to have regard, prior
to exercising its power to revoke a licence granted under that Act,
to any direction issued by the Minister under section 96 of that
Act and in force at that time. The Minister may issue a direction
under section 96 if an electricity supply emergency under Part 6
of the Electricity Industry Act 2000 has been proclaimed.
The clause also provides that procedures for revoking a licence
condition specified in the licence that are inconsistent with the
amendments made by this clause are of no effect.
Clause 8 amends section 46B of the Electricity Industry Act 2000 to
insert a definition of AMI tariff. An AMI tariff is defined to
mean a tariff applying to electricity supplied and sold that is
metered by means of advanced metering infrastructure, or a tariff
applying to electricity distributed and supplied that is metered by
means of advanced metering infrastructure. An AMI tariff
includes a tariff referred to in section 35, 36A or 40A of the
Electricity Industry Act 2000. These sections respectively
relate to standing offers to supply and sell electricity, publication
of tariffs, terms and conditions of the sale of electricity to certain
customers, and deemed distribution contracts.
2
Clause 9 amends section 46D of the Electricity Industry Act 2000 to
insert new heads of power for the Governor in Council to make
Orders in relation to advanced metering infrastructure.
The amendment allows orders to be made to require relevant
licensees to notify customers of certain matters in relation to
AMI tariffs and to require relevant electricity licensees to meet
certain requirements before the licensee may offer to supply and
sell, or to distribute and supply, electricity at specified AMI
tariffs. The amendment also allows orders to be made to require
relevant licensees to provide information about AMI tariffs to
assist customers to make informed choices about their electricity
supply arrangements.
Clause 10 amends the Electricity Industry Act 2000 to make it clear that
any requirements made under an Order in Council under section
46D(j) to (s) apply in addition to, and do not limit, the
requirements under sections 35, 35C, 35D, 36A or 40A of that
Act.
Clause 11 makes statute law revision amendments to sections 40F(1) and
40FJ(2) of the Electricity Industry Act 2000 to correct
typographical errors.
PART 3—AMENDMENT OF ELECTRICITY SAFETY
ACT 1998
Clause 12 substitutes a new section 1 of the Electricity Safety Act 1998 to
include in the purpose of that Act the reliability and security of
electricity supply as one of the matters provided for under that
Act.
Clause 13 amends section 3 of the Electricity Safety Act 1998. The clause
amends the definition of distribution area to clarify that the
reference to a licensee in the definition is a reference to a
distribution company, and amends the definition of practicable to
ensure the definition applies to new section 83B.
The clause also inserts new definitions of accepted bushfire
mitigation plan, bushfire mitigation plan, hazardous bushfire
risk area and specified bushfire risk period.
Clause 14 amends section 6 of the Electricity Safety Act 1998 to include
promoting the mitigation of bushfire danger as one of the
objectives of Energy Safe Victoria under that Act.
3
Clause 15 inserts new section 7A into the Electricity Safety Act 1998 to
enable Energy Safe Victoria to have regard to the reliability and
security of electricity supply in performing its functions or
exercising powers with respect to Part 8 and Part 10 of that Act
or regulations made for the purposes of either of those Parts.
Part 8 of that Act deals with bushfire mitigation and electric line
clearance and Part 10 deals with electricity safety management
schemes.
Clause 16 amends the heading of Part 8 of the Electricity Safety Act 1998,
to include a reference to bushfire mitigation and to reflect that
Part 8 now applies to a more narrowly defined class of operators
of electric lines. Clauses 22 to 26 of the Bill amend Part 10 of
the Electricity Safety Act 1998 to provide for bushfire
mitigation plan requirements that apply to electricity distribution
and transmission companies.
Clause 17 substitutes Division 1A of Part 8 of the Electricity Safety Act
1998 with a new Division 1A.
Division 1A—Bushfire mitigation requirements for
certain operators of at-risk electrical lines
Subdivision 1—Interpretation
New section 83A inserts definitions of at-risk electric line and
specified operator for the purposes of Division 1A.
Subdivision 2—General duties in relation to bushfire
mitigation plans
New section 83B provides that specified operators must minimise
bushfire danger arising from their at-risk electric lines as far as
practicable and imposes penalties for failure to fulfil that duty.
New section 83B also provides that it is a defence to a
prosecution for a breach of that duty if the specified operator
has complied with its accepted bushfire mitigation plan.
New section 83B mirrors new section 98(c) of the Electricity
Safety Act 1998 inserted by clause 23 of the Bill which applies
to major electricity companies.
New section 83BA requires specified operators to submit, before
1 July each year, a bushfire mitigation plan for Energy Safe
Victoria's acceptance. This provision re-inserts existing section
83A of the Electricity Safety Act 1998, amended so as to
impose the obligation on "specified operators", which is a more
narrowly defined class than "electricity suppliers" who are
subject to this obligation under existing section 83A.
4
New section 83BA significantly increases the penalties for
non-compliance with this obligation. Clause 26 of the Bill inserts
a new section 113A into the Electricity Safety Act 1998 to
impose an equivalent obligation on major electricity companies.
New section 83BB provides that a specified operator must not
commence to commission, or operate, at-risk electric lines during
the specified bushfire risk period without an accepted bushfire
mitigation plan. This provision also requires that a specified
operator must comply with its accepted bushfire mitigation plan.
It is an offence to fail to comply with these requirements.
Clause 26 of the Bill inserts new section 113B into the
Electricity Safety Act 1998 to impose an equivalent obligation
on major electricity companies.
Subdivision 3—Acceptance and validation of bushfire
mitigation plans
New section 83BC provides that Energy Safe Victoria may
require a specified operator submitting a bushfire mitigation plan
to obtain an independent validation of the plan prior to
acceptance of that plan by Energy Safe Victoria. New section
83BC mirrors existing section 100 of the Electricity Safety Act
1998 which applies to major electricity companies in respect of
their electricity safety management scheme.
New section 83BD provides that Energy Safe Victoria may
require additional information in relation to a bushfire mitigation
plan and is not required to proceed with the consideration of a
bushfire mitigation plan until the information is provided.
New section 83BD mirrors existing section 101 of the Electricity
Safety Act 1998 which applies to major electricity companies in
respect of their electricity safety management scheme.
New section 83BE provides that Energy Safe Victoria must
consider a submitted bushfire mitigation plan with as much
expedition as permitted considering the requirements of the
Electricity Safety Act 1998 and the regulations and the
appropriateness of the plan. New section 83BE mirrors existing
section 102 of the Electricity Safety Act 1998 which applies to
major electricity companies in respect of their electricity safety
management scheme.
New section 83BF provides that Energy Safe Victoria may
provisionally accept a bushfire mitigation plan. New section
83BF mirrors existing section 103 of the Electricity Safety Act
1998 which applies to major electricity companies in respect of
their electricity safety management scheme.
5
New section 83BG specifies procedures to be followed by
Energy Safe Victoria if it decides not to accept or provisionally
accept a submitted bushfire mitigation plan. New section 83BG
mirrors existing section 104 of the Electricity Safety Act 1998
which applies to major electricity companies in respect of their
electricity safety management scheme.
New section 83BH allows Energy Safe Victoria to determine a
bushfire mitigation plan that is to apply if a specified operator
fails to submit a bushfire mitigation plan or Energy Safe Victoria
decides not to accept a bushfire mitigation plan submitted by that
operator. New section 83BH mirrors existing section 105 of the
Electricity Safety Act 1998 which applies to major electricity
companies in respect of their electricity safety management
scheme.
New section 83BI provides that an accepted bushfire mitigation
plan expires on 30 June in the year after the year in which the
plan is accepted. This provision complements new section 83BA
which requires plans to be submitted by 1 July each year.
New section 83BJ provides that Energy Safe Victoria may
require a specified operator to obtain an independent audit of the
operator's compliance with its accepted bushfire mitigation plan.
New section 83BJ mirrors existing section 120H of the
Electricity Safety Act 1998 which applies to major electricity
companies in respect of their electricity safety management
scheme.
New section 83BK provides that Energy Safe Victoria may
conduct an audit to determine compliance by a specified operator
with its accepted bushfire mitigation plan. New section 83BK
mirrors existing section 120I of the Electricity Safety Act 1998
which applies to major electricity companies in respect of their
electricity safety management scheme.
Clause 18 inserts a new section 86A into the Electricity Safety Act 1998 to
provide that Energy Safe Victoria may issue directions in relation
to restrictions on the planting of trees or to the removal of trees in
the immediate area around an electric line. This directions power
will support regulations that may be made under that Act, which
are provided for in clause 33 of the Bill.
6
Clause 19 inserts new Division 4 of Part 8 into the Electricity Safety Act
1998.
Division 4—Compliance audits in relation to
compliance with the Code
New section 90A provides that new Division 4 applies to
responsible persons who have prepared a management plan
relating to compliance with the Code of Practice for Electric Line
Clearance.
New section 90B provides that Energy Safe Victoria may require
a responsible person to obtain an independent audit of that
person's compliance with its management plan. New section 90B
mirrors existing section 120H of the Electricity Safety Act 1998
which applies to major electricity companies in respect of their
electricity safety management scheme.
New section 90C provides that Energy Safe Victoria may
conduct an audit to determine compliance by a responsible
person with that person's management plan. New section 90C
mirrors existing section 120I of the Electricity Safety Act 1998
which applies to major electricity companies in respect of their
electricity safety management scheme.
Clause 20 amends section 87 of the Electricity Safety Act 1998 to provide
that one of the members of the Electric Line Clearance
Consultative Committee shall be an officer or employee of
Energy Safe Victoria nominated by the Minister.
Clause 21 inserts new section 88A into the Electricity Safety Act 1998,
which provides that the Electric Line Clearance Consultative
Committee may have regard to the reliability and security of
electricity supply in performing its functions under section 88 of
the Electricity Safety Act 1998. The Committee's functions
under that section include providing advice in relation to electric
line clearance and reporting on the performance of its functions.
Clause 22 inserts a new Division 1AA of Part 10 into the Electricity Safety
Act 1998, which contains new section 98AA setting out a
definition of at-risk supply network for the purposes of Part 10
of that Act.
Clause 23 amends section 98 of the Electricity Safety Act 1998 to include
in the general duties imposed on major electricity companies an
obligation to minimise as far as practicable the risk of bushfire
danger associated with an at-risk supply network.
7
Clause 24 amends section 99 of the Electricity Safety Act 1998 to require
that major electricity companies include a plan dealing with
bushfire mitigation as a component of their electricity safety
management scheme.
Clause 25 inserts a new section 105A into the Electricity Safety Act 1998
to provide that the bushfire mitigation plan of an accepted
electricity safety management scheme expires on 30 June in the
year after the year the electricity safety management scheme is
accepted. This clause applies in relation to a new ESMS, which
incorporates a bushfire mitigation plan, and which is submitted to
Energy Safe Victoria for acceptance. The lapsing of subsequent
bushfire mitigation plans submitted under new section 113A is
provided for by new section 113E.
Clause 26 inserts a new Division 2A into Part 10 of the Electricity Safety
Act 1998 to provide for bushfire mitigation planning by major
electricity companies.
Division 2A—Ongoing bushfire mitigation
requirements for major electricity companies
New section 113A requires major electricity companies to
submit, before 1 July each year, a bushfire mitigation plan for
Energy Safe Victoria's acceptance. This provision re-inserts
existing section 83A of the Electricity Safety Act 1998,
amended so as to impose the obligation on "major electricity
companies", which is a more narrowly defined class than
"electricity suppliers" who are subject to this obligation under
existing section 83A. New section 113A significantly increases
the penalties for non-compliance with this obligation. Clause 17
of the Bill inserts new section 83BA into the Electricity Safety
Act 1998 to provide for an equivalent obligation applying to
specified operators.
New section 113B provides that a major electricity company
must not commence to commission, or operate, certain supply
networks during the specified bushfire risk period without an
accepted bushfire mitigation plan. This provision also requires
that a major electricity company must comply with its accepted
bushfire mitigation plan. It is an offence to fail to comply with
these requirements. Clause 17 of the Bill inserts new
section 83BB into the Electricity Safety Act 1998 to provide
for equivalent obligations applying to specified operators.
New section 113C applies new sections 83BC to 83BH of the
Electricity Safety Act 1998, which concern validation,
collection of information, acceptance, provisional acceptance,
non-acceptance and determination by Energy Safe Victoria of a
8
specified operator's bushfire mitigation plan, to a major
electricity company's bushfire mitigation plan.
New section 113D provides that a major electricity company's
accepted bushfire mitigation plan is taken to form a part of its
accepted electricity safety management scheme. However, it
excludes specific provisions of the Electricity Safety Act 1998
that are not relevant to the bushfire mitigation part of an
electricity safety management scheme. Specifically, new
section 113D—
excludes section 106 of the Electricity Safety Act 1998
as compliance with an accepted bushfire mitigation plan
is provided for under new section 113B;
excludes sections 107, 109 and 110, as those provisions
provide for revisions to an electricity safety
management scheme under specific situations which are
not appropriate for an accepted bushfire mitigation plan,
the plan being prepared and submitted annually as
required under new section 113A; and
provides that the annual acceptance, provisional
acceptance or determination of a bushfire mitigation
plan as part of a major electricity company's electricity
safety management scheme does not alter the 5 year
cycle after which a major electricity company must
submit a revised electricity safety management scheme
under section 108. Section 108 requires that an
electricity safety management scheme must be revised
5 years after it was first accepted or last revised.
New section 113E provides that the accepted bushfire mitigation
plan that is a part of a major electricity company's electricity
safety management scheme expires on 30 June in the year after
the bushfire mitigation plan is accepted. This clause applies in
relation to bushfire mitigation plans that are submitted annually
under new section 113A after the lapsing of the initial bushfire
mitigation plan incorporated in a new electricity safety
management scheme. Lapsing of the initial bushfire mitigation
plan that is incorporated in a new accepted electricity safety
management scheme is provided for under new section 105A of
the Electricity Safety Act 1998 which is inserted by clause 25 of
the Bill.
9
New section 113F re-inserts and re-numbers existing section 83B
of the Electricity Safety Act 1998 and requires a distribution
business to inspect private electric lines within its distribution
area. Existing section 83B is revoked by the substitution of a
new Division for Division 1A of Part 8 of the Electricity Safety
Act 1998 by clause 17 of the Bill.
Clause 27 repeals section 112 of the Electricity Safety Act 1998 which
grants exemptions from compliance with certain requirements
under the Electricity Safety (Network Assets) Regulations 1999.
Section 112 is redundant because the regulations have been
revoked.
Clause 28 amends section 120H of the Electricity Safety Act 1998 to
provide that Energy Safe Victoria may require an accepted
electricity safety management scheme operator to obtain
independent audits in respect of the operator's supply network or
its complex electrical installation.
Clause 29 amends section 120I of the Electricity Safety Act 1998 to
provide that Energy Safe Victoria may conduct an audit of the
operator's supply network or its complex electrical installation.
Clause 30 amends section 140A of the Electricity Safety Act 1998 which
defines certain provisions of that Act to be prescribed offences
that may be enforced by infringement notices. The clause—
removes the redundant references to section 83A(1)
and 83A(3) which are being repealed by clause 17 of
the Bill;
inserts references to new sections 83BA(3) and 113A(3)
which replicate the effect of repealed section 83A(3);
and
substitutes the reference to section 83B(1) which is
being repealed and re-inserted with amendments as
new section 113F(1).
Clause 31 inserts new section 141AB of the Electricity Safety Act 1998.
New section 141AB empowers Energy Safe Victoria to issue
notices to collect information for the purpose of preparing annual
reports on the performance of distribution companies in respect
of their obligations under Part 8 and Part 10 of the Electricity
Safety Act 1998. Part 8 of that Act deals with bushfire
mitigation and electric line clearance and Part 10 deals with
electricity safety management schemes. New section 141AB also
sets out the requirements relating to issuing and complying with
notices.
10
Clause 32 inserts new section 149A into the Electricity Safety Act 1998 to
provide that regulations may be made with respect to the
reliability and security of the supply of electricity.
Clause 33 amends section 151 of the Electricity Safety Act 1998 to
provide that regulations relating to electric line clearance may
make provision for further matters concerning trees in the
immediate area around electric lines.
Clause 34 inserts new section 151A into the Electricity Safety Act 1998 to
provide a specific head of power for regulations to be made with
respect to the prevention of bushfires arising from electric lines
or electrical installations and the protection of electric lines or
electrical installations from the effects of bushfires. Existing
regulations concerning bushfire mitigation are made under the
general regulation making head of power under section 157 of
the Electricity Safety Act 1998.
Clause 35 makes statute law revision amendments. The clause amends
section 3 of the Electricity Safety Act 1998 to repeal and
re-insert the definition of Committee to ensure that it appears
in alphabetical order. The clause also amends the definition of
voluntary ESMS operator to correct a punctuation error.
The clause also amends section 120C(1)(b) to correct a
grammatical error.
PART 4—AMENDMENT OF NATIONAL ELECTRICITY
(VICTORIA) ACT 2005
Clause 36 inserts new section 16B into the National Electricity (Victoria)
Act 2005 to exclude the national smart meter rollout provisions
contained in Part 8A of the National Electricity Law from
applying as a law of Victoria. The clause also provides that any
Rule made for the purpose of Part 8A of the National Electricity
Law does not have the force of law in Victoria.
Clause 37 inserts a new heading to create Division 1 of Part 3 of the
National Electricity (Victoria) Act 2005.
Clause 38 inserts new definitions into section 13 of the National Electricity
(Victoria) Act 2005—
Country Fire Authority means the Country Fire Authority
appointed under the Country Fire Authority Act 1958.
Distribution Network Service Provider is defined as having the
same meaning as in the National Electricity Rules. The National
Electricity Rules define Distribution Network Service Provider to
mean a person who engages in the activity of owning, controlling
or operating a distribution system.
11
Energy Safe Victoria means Energy Safe Victoria established
under the Energy Safe Victoria Act 2005.
F-factor amount determination means a determination made by
the Australian Energy Regulator in accordance with an Order
under section 16C(1)(b) of the National Electricity (Victoria)
Act 2005. An f-factor amount determination is an annual
determination that specifies the amount that is to be treated as a
positive pass through amount or a negative pass through amount
for the purposes of Chapter 6 of the National Electricity Rules.
F-factor scheme determination means a determination made by
the Australian Energy Regulator in accordance with an Order
under section 16C(1)(a) of the National Electricity (Victoria)
Act 2005. An f-factor scheme determination is a determination
for the purpose of providing incentives for Distribution Network
Service Providers to reduce the risk of fire starts and to reduce
the risk of loss or damage caused by fire starts.
First distribution determination period is the period during
which the f-factor scheme operates. First distribution
determination period is defined as the period commencing on the
day after the Victorian distribution pricing determination end
date and ending on 31 December 2015 or, if the distribution
determination made by the Australian Energy Regulator that is in
force on that date continues in force after that date, that later date.
The Victorian distribution pricing determination end date is
defined in section 13 of the National Electricity (Victoria) Act
2005 as being 31 December 2010, or any later date specified in a
Victorian distribution pricing determination for the expiry of that
price determination.
Metropolitan Fire and Emergency Services Board means the
Metropolitan Fire and Emergency Services Board established
under the Metropolitan Fire Brigades Act 1958.
Relevant entity means the Secretary of the Department of
Sustainability and Environment, Energy Safe Victoria, the
Country Fire Authority or the Metropolitan Fire and Emergency
Services Board.
Service target performance incentive scheme has the same
meaning as in the National Electricity Rules. Relevantly for the
purposes of the Bill, the service target performance incentive
scheme is a scheme developed and published by the Australian
Energy Regulator in accordance with the distribution consultation
procedures and the requirements set out in clause 6.6.2 of the
National Electricity Rules.
12
Clause 39 inserts a new heading to create Division 2 of Part 3 of the
National Electricity (Victoria) Act 2005.
Clause 40 inserts a new Division 3 into Part 3 of the National Electricity
(Victoria) Act 2005.
New section 16C creates a head of power for the Governor in
Council to make an order for the purpose of reducing the risk of
fires caused by electricity assets and reduce the risk of loss or
damage caused by those fires. An Order under subsection (1)
may confer functions and powers, or impose duties, on the
Australian Energy Regulator to make determinations for this
purpose.
Under subsection (2), an Order under section 16C(1) may specify
a range of matters concerning the way an f-factor scheme
determination and an f-factor amount determination are to be
made, published, implemented and administered by the
Australian Energy Regulator. These include matters the
Australian Energy Regulator is to address in a determination, the
consultation process it is to follow, the matters it must have
regard to and the actions it must take.
New section 16C(6) sets out the period during which an Order
under section 16C(1) has effect. Section 16C(7) states that an
f-factor scheme determination or an f-factor amount
determination cannot come into effect before the Victorian
distribution pricing determination end date.
New section 16D states that a function or power conferred or a
duty imposed on the Australian Energy Regulator by an Order
under section 16C(1) is to be taken to be conferred or imposed by
the National Electricity (Victoria) Act 2005. This statement is
required to meet the requirements of section 44AH and section
44AI of the Trade Practices Act 1974 (Commonwealth) for a
valid conferral of a function or power or imposition of a duty
upon the Australian Energy Regulator.
New section 16E modifies the application of certain provisions of
the National Electricity Law as those provisions apply as a law of
Victoria. These modifications—
require Distribution Network Service Providers to
comply with the determinations made by the Australian
Energy Regulator under an Order under section 16C of
the National Electricity (Victoria) Act 2005;
13
allow the Australian Energy Regulator, if it considers it
is reasonably necessary for the exercise of its functions
or powers under an Order under section 16C, to serve or
make regulatory information instruments under the
National Electricity Law;
allow the Australian Energy Regulator to use
information provided in compliance with a regulatory
information instrument for any purpose connected with
the performance or exercise of a function or power by
the Australian Energy Regulator under the National
Electricity Law, the National Electricity Rules or under
an Order under section 16C;
allow the Australian Energy Regulator to disclose
information given to it in confidence in relation to an
Order under section 16C in accordance with Division 6
of Part 3 of the National Electricity Law;
if the Australian Energy Regulator issues a notice
inviting submissions in relation to the making of an
f-factor scheme determination or an f-factor amount
determination, require it to consider every submission it
receives within the period specified in the notice and
allow it to consider late submissions.
New section 16E(2) modifies the National Electricity Rules as
the Rules apply as law in Victoria, to permit the Australian
Energy Regulator to decide to vary a distribution determination
as a consequence of making an f-factor scheme determination.
The Australian Energy Regulator may only vary a distribution
determination once during the regulatory control period.
A decision to vary a distribution determination, and the
distribution determination as varied, are taken not to be
reviewable regulatory decisions within the meaning of
section 71A of the National Electricity Law and are not subject
to merits review under that Law.
New section 16E(2)(b) deems an f-factor amount determination
to be a pass through event for the purpose of the National
Electricity Rules.
New section 16F states that the process the Australian Energy
Regulator has commenced under the National Electricity Law for
making distribution determinations for Victorian Distribution
Network Service Providers that are to apply during the first
distribution determination period is not affected by the making of
14
an f-factor scheme determination or an f-factor amount
determination.
New section 16G authorises the Australian Energy Regulator to
request, from the Secretary to the Department of Sustainability
and the Environment, Energy Safe Victoria, the Country Fire
Authority or the Metropolitan Fire and Emergency Services
Board, certain information that is relevant to fire starts.
Clause 41 amends section 29(3)(a) of the National Electricity (Victoria)
Act 2005 to clarify the grounds on which an aggrieved person
may appeal a determination of the Australian Energy Regulator
under section 29(1)(c), or a determination or decision of the
Australian Energy Regulator under section 29(1)(d) of that Act.
This clause also clarifies that an aggrieved person under section
29(2) of the National Electricity (Victoria) Act 2005 is to
include a person who comes within section 55(1A) of the
Essential Services Commission Act 2001.
Clause 42 amends section 41(1) of the National Electricity (Victoria)
Act 2005 to remove a redundant reference to VENCorp.
Functions performed by VENCorp in relation to the electricity
transmission system, such as electricity transmission planning,
have been transferred to the Australian Energy Market Operator.
PART 5—AMENDMENT OF ENERGY SAFE VICTORIA
ACT 2005
Clause 43 amends section 14(3) of the Energy Safe Victoria Act 2005 to
clarify the grounds on which the Governor in Council may
remove the Director of Energy Safe Victoria from office.
Clause 44 inserts a new Division 5A of Part 2 into the Energy Safe
Victoria Act 2005.
New section 19A requires Energy Safe Victoria to develop and
publish a Charter of Consultation and Regulatory Practice
(including guidelines) relating to the preparation of its corporate
plan and conducting enquiries under Part 3 of the Energy Safe
Victoria Act 2005. Section 19A also requires that the Charter
must not require or allow public release of a draft of Energy Safe
Victoria's corporate plan or a draft of part of the plan without the
prior approval of Energy Safe Victoria and the Minister.
15
New section 19B requires Energy Safe Victoria to enter into a
Memorandum of Understanding with a body prescribed for the
purposes of this section. The section also requires Energy Safe
Victoria to publish that Memorandum of Understanding in the
Government Gazette and on the Internet.
PART 6—AMENDMENT OF MINERAL RESOURCES
(SUSTAINABLE DEVELOPMENT) ACT 1990
Clause 45 amends section 2(1)(b)(vii) of the Mineral Resources
(Sustainable Development) Act 1990 to replace the word
"people" with "public". This amendment supports the transfer
of the regulation of the safety of workers at a mine or quarry
from that Act to the Occupational Health and Safety Act 2004.
As the term "people" may be interpreted to include workers as
well as members of the public, this amendment clarifies that the
Mineral Resources (Sustainable Development) Act 1990
provides for the safety of the public only, with respect to the
operation of mines or quarries.
Clause 46 repeals the definition of accident in section 4(1) of the Mineral
Resources (Sustainable Development) Act 1990.
The definition of accident was used in the context of accidents
impacting on the safety of workers and is redundant following
the transfer of the regulation of the safety of workers at a mine or
quarry from that Act to the Occupational Health and Safety
Act 2004.
Clause 47 amends section 8AB(3) of the Mineral Resources (Sustainable
Development) Act 1990 to remove references to the safety of
workers. These references are now redundant because the
regulation of the safety of workers at a mine or quarry has been
transferred from the Mineral Resources (Sustainable
Development) Act 1990 to the Occupational Health and Safety
Act 2004. The clause also reduces the penalty for non-
compliance with section 8AB(3) of the Mineral Resources
(Sustainable Development) Act 1990 from 100 penalty units to
20 penalty units to bring the penalty for that offence in line with
penalties for similar offences under that Act.
Clause 48 amends section 77G of the Mineral Resources (Sustainable
Development) Act 1990 to provide that if a quarry is declared
under section 7C of that Act, the extractive industry work
authority holder for that quarry must submit a revised work plan
that includes the additional quarry stability information
prescribed in the regulations.
16
Clause 49 amends section 77J(1)(f) of the Mineral Resources (Sustainable
Development) Act 1990 to exclude that subsection from
applying to the safety of workers. This amendment supports the
removal of redundant occupational health and safety provisions
from that Act, which are now provided for under the
Occupational Health and Safety Act 2004.
Clause 50 inserts new sections 77KA and 77KB into the Mineral
Resources (Sustainable Development) Act 1990.
New section 77KA requires a reportable event to be reported to
the Chief Inspector. It defines a reportable event to mean an
event prescribed by regulation as a reportable event for the
purposes of section 77KA.
New section 77KB requires that the holder of the extractive
industry work authority for a quarry that has been declared under
section 7C of the Mineral Resources (Sustainable
Development) Act 1990 must submit a request to vary the
approved work plan in respect of that quarry. This requirement
aligns the requirements for varying approved work plans with the
requirements for declared quarries.
Clause 51 amends section 77M(2)(c) of the Mineral Resources
(Sustainable Development) Act 1990 to omit the words
"workers or". This amendment supports the transfer of the
regulation of the safety of workers at a mine or quarry from that
Act to the Occupational Health and Safety Act 2004.
Clause 52 repeals section 95D(4) of the Mineral Resources (Sustainable
Development) Act 1990 which provides for a report concerning
the exercise of an inspector's powers to enter premises to be
combined with an occupational health and safety report.
Section 95D(4) is now redundant as the relevant occupational
health and safety matters are now provided for under the
Occupational Health and Safety Act 2004.
Clause 53 repeals section 124(1)(qa) of the Mineral Resources
(Sustainable Development) Act 1990 which provides a head of
power to make regulations relating to matters now provided for
under the Occupational Health and Safety Act 2004.
Therefore, the head of power to make regulations is now
redundant.
Clause 54 makes statute law revision amendments. The clause amends
section 77U of the Mineral Resources (Sustainable
Development) Act 1990 to correct the paragraph numbering in
that section and to correct a typographical error in section
124(1)(ob) of that Act.
17
PART 7—AMENDMENT OF THE PETROLEUM ACT 1998
Clause 55 makes minor amendments to section 3(2) of the Petroleum Act
1998 to clarify the intention of the Act is to provide for matters
of public safety, rather than workplace safety, in relation to
petroleum operations and to reflect that occupational health and
safety matters are now provided for under the Occupational
Health and Safety Act 2004.
Clause 56 repeals a redundant definition of good oil-field practice in
section 4 of the Petroleum Act 1998.
Clause 57 inserts new section 20A into the Petroleum Act 1998 to make it
explicit that the Minister has the power to grant a petroleum
exploration licence under the Petroleum Act 1998.
Clause 58 makes a minor amendment to the definition of gathering line in
section 82 of the Petroleum Act 1998. The amendment will
clarify that a gathering line may be used (or may be intended to
be used) or designed to convey petroleum or a petroleum product
in either direction between the areas mentioned in the definition.
Currently, the definition could be interpreted to imply that a
gathering line is only used to convey a substance in one direction.
Clause 59 makes minor amendments to section 161(1)(a) of the Petroleum
Act 1998 to support the occupational health and safety reforms
that transferred responsibility for occupational health and safety
to the Victorian WorkCover Authority, for administration under
the Occupational Health and Safety Act 2004. The amendment
removes the application of section 161(1) to the safety of
workers.
Clause 60 makes a minor amendment to section 200(1)(a) of the Petroleum
Act 1998 to support the occupational health and safety reforms
that transferred responsibility for occupational health and safety
to the Victorian WorkCover Authority, for administration under
the Occupational Health and Safety Act 2004. The effect of
the amendment is that section 200(1) does not apply to the safety
of workers.
Clause 61 makes a minor amendment to section 204(2)(a) of the Petroleum
Act 1998 to support the occupational health and safety reforms
that transferred responsibility for occupational health and safety
to the Victorian WorkCover Authority, for administration under
the Occupational Health and Safety Act 2004. The effect of
the amendment is that section 204(2) does not apply to the safety
of workers.
18
Clause 62 makes a minor amendment to section 271(1)(a) of the Petroleum
Act 1998 to support the occupational health and safety reforms
that transferred responsibility for occupational health and safety
to the Victorian WorkCover Authority, for administration under
the Occupational Health and Safety Act 2004. The effect of
the amendment is that section 217(1) does not apply to the safety
of workers.
Clause 63 amends the regulation making powers in section 252 of the
Petroleum Act 1998 to remove references to the safety of
workers. The clause also amends section 252 of the Petroleum
Act 1998 to enable regulations to be made to exempt persons
from the requirements of regulations made under the Act.
Currently there is only a power to make regulations that exempt
persons from the requirements of the Act.
PART 8—REPEALS AND AMENDMENTS OF OTHER ACTS
Division 1—Repeal of the Mines Act 1958
Clause 64 repeals the Mines Act 1958 which is now redundant as the
minerals and extractives industries are now jointly legislated for
under the Mineral Resources (Sustainable Development) Act
1990.
Clause 65 amends the objectives and principles provisions in section 3(1)(e)
and section 3(2)(i) of the Geothermal Energy Resources Act
2005 respectively to remove references to the safety of workers.
The amendments support the reforms that transferred
responsibility for occupational health and safety from that Act to
the Victorian WorkCover Authority for administration under the
Occupational Health and Safety Act 2004.
Clause 66 inserts new section 20A into the Geothermal Energy Resources
Act 2005 to make it explicit that the Minister may grant an
exploration permit under that Act.
Clause 67 amends section 96(1)(a) of the Geothermal Energy Resources
Act 2005. The amendments support the reforms that transferred
responsibility for occupational health and safety from that Act to
the Victorian WorkCover Authority for administration under the
Occupational Health and Safety Act 2004.
Clause 68 makes a minor amendment to section 121(1) the Geothermal
Energy Resources Act 2005 to apply that section to all
authorities to which that Act applies.
19
Clause 69 amends section 126(1)(a) of the Geothermal Energy Resources
Act 2005 to remove references to the safety of workers.
The amendments support the reforms that transferred
responsibility for occupational health and safety from that Act to
the Victorian WorkCover Authority for administration under the
Occupational Health and Safety Act 2004.
Clause 70 amends section 131(2)(a) of the Geothermal Energy Resources
Act 2005 to remove references to the safety of workers in that
section. The amendments support the reforms that transferred
responsibility for occupational health and safety from that Act to
the Victorian WorkCover Authority for administration under the
Occupational Health and Safety Act 2004.
Clause 71 amends section 145(1)(a) of the Geothermal Energy Resources
Act 2005 to make it clear that the subsection applies to risks to
any members of the public, and not to risks faced by workers.
Clause 72 repeals spent provisions of the Geothermal Energy Resources
Act 2005.
Division 3—Greenhouse Gas Geological Sequestration Act 2008
Clause 73 amends section 209(a) of the Greenhouse Gas Geological
Sequestration Act 2008 to reflect the reforms that transferred
responsibility for occupational health and safety from that Act to
the Victorian WorkCover Authority for administration under the
Occupational Health and Safety Act 2004. The clause removes
references that could be construed as providing for safety of
workers.
Clause 74 amends section 254(1) of the Greenhouse Gas Geological
Sequestration Act 2008 to reflect the reforms which transferred
responsibility for occupational health and safety from that Act to
the Victorian WorkCover Authority for administration under the
Occupational Health and Safety Act 2004. The clause removes
references that could be construed as providing for safety of
workers.
Clause 75 amends section 258(2) of the Greenhouse Gas Geological
Sequestration Act 2008 to reflect the reforms which transferred
responsibility for occupational health and safety from that Act to
the Victorian WorkCover Authority for administration under the
Occupational Health and Safety Act 2004. The clause removes
references that could be construed as providing for safety of
workers.
20
Clause 76 amends section 271(1)(a) and section 313 of the Greenhouse
Gas Geological Sequestration Act 2008 to reflect the reforms
which have transferred responsibility for occupational health and
safety from that Act to the Victorian WorkCover Authority for
administration under the Occupational Health and Safety Act
2004. The clause removes references that could be construed as
providing for safety of workers and substitutes them with
references which explicitly provide for the safety of the public.
Clause 77 makes a statute law revision amendment to section 303(2)(f) of
Greenhouse Gas Geological Sequestration Act 2008 which
substitutes "persons" for "people" to make it explicit that the
section applies to corporations and individuals, and to maintain
consistency with Victoria's legislative drafting conventions.
Division 4—Offshore Petroleum and Greenhouse Gas Storage
Act 2010
Clause 78 makes various statute law revisions to provisions of the Offshore
Petroleum and Greenhouse Gas Storage Act 2010 to correct
spelling and grammatical errors, to correct the layout of section
273(4) and to ensure that certain sections of that Act are drafted
in accordance with Victoria's legislative drafting conventions.
Division 5—Pipelines Act 2005
Clause 79 amends the heading to section 51 of the Pipelines Act 2005 so
that the heading better reflects the content of the section.
Clause 80 amends section 186(2) of the Pipelines Act 2005 to provide for
the list of documents and instruments which must be registered in
the pipelines register. The amendment requires the registration
of documents relating to licences that the Minister specifies by
notice for the purpose of registration.
Clause 81 inserts a new section 186A into the Pipelines Act 2005 to enable
the Minister to add to the list of documents and instruments
requiring registration in the pipelines register.
Division 6—Victorian Energy Efficiency Target Act 2007
Clause 82 amends section 18 of the Victorian Energy Efficiency Target
Act 2007 to enable a single greenhouse gas reduction certificate
to be issued for greenhouse gas abatement that amounts to greater
than one half of a tonne but less than one whole tonne.
21
Clause 83 inserts new section 32A into the Victorian Energy Efficiency
Target Act 2007 to amend the greenhouse gas reduction rates for
2010 which were incorrectly fixed under an Order in Council due
to an administrative error.
Division 7—Victorian Renewable Energy Act 2006
Clause 84 makes a statute law revision to section 58 of the Victorian
Renewable Energy Act 2006, to reflect the transfer of functions
and powers from the National Energy Market Management
Company (NEMMCO) to the Australian Energy Market Operator
(AEMO).
Division 8—Gas Industry Act 2001
Clause 85 amends section 38 of the Gas Industry Act 2001 to require the
Essential Services Commission to have regard, prior to exercising
its power to revoke a licence granted under that Act, to any
direction issued by the Minister under section 207 of that Act and
in force at that time. The Minister may issue a direction under
section 207 if a gas supply emergency under Part 9 of the Gas
Industry Act 2001 has been proclaimed. The clause also
provides that procedures for revoking a licence condition
specified in the licence that are inconsistent with the amendments
made by this clause are of no effect.
Division 9—Energy and Resources Legislation Amendment
Act 2009
Clause 86 repeals Part 8 of the Energy and Resources Legislation
Amendment Act 2009, which contains provisions that are now
to be inserted into the Mineral Resources (Sustainable
Development) Act 1990 by clause 50.
Division 10—Aboriginal Heritage Act 2006
Clause 87 amends the definition of statutory authorisation in section 50 of
the Aboriginal Heritage Act 2006 to provide that any variation
to an area work plan submitted and approved under section
41AD(4) of the Mineral Resources (Sustainable Development)
Act 1990 may be granted without an approved cultural heritage
management plan. This is a consequential amendment arising
from amendments made under the Energy and Resources
Legislation Amendment Act 2009 and is consistent with
requirements to prepare a cultural heritage management plan that
apply in respect of area work plans.
22
PART 9—REPEAL OF AMENDING ACT
Clause 88 provides for the repeal of the Act on 1 July 2012.
23